JSPL board okays divestment in Jindal Power to Worldone for ₹3,015 cr

Our Bureau. New Delhi | Updated on April 27, 2021

Worldone was selected by way of an elaborate bidding process

Jindal Steel & Power Ltd (JSPL) on Tuesday said it will sell its 96.42 per cent stake in electricity-generation subsidiary Jindal Power Ltd for ₹3,015 crores.

The buyer, Worldone Private Ltd is a private company owned by JSPL chairman Naveen Jindal.

The approximate enterprise value for the deal is ₹12,000 crore, according to sources, out of which ₹4,400 crore has been balanced against outstanding debt which the power subsidiary had taken from JSPL. Redeemable preference shares make up another ₹7,000 crore.

“The divestment is in line with JSPL’s strategic objective to continuously reduce its debt, focus on its India Steel business and significantly reduce its carbon footprint by almost half as part of its ESG objectives,” JSPL said in a statement.

The deal comprises an all-cash offer of ₹3,015 crores for 96.42 per cent stake in Jindal Power, including 3.4GW coal-fired power capacity in Chhattisgarh. 

“This divestment is in line with our ESG objectives to be amongst the top 10 lowest Co2 emitting steel companies of the world. It is yet another step towards our vision to reduce debt substantially and create a robust balance sheet for our investors and stakeholders,” JSPL MD VR Sharma said in the statement.

JSPL will now focus on undertaking expansion of its Angul steel plant from 6 MTPA to 12 MTPA, he added.

Published on April 27, 2021

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